House price €275, offer €255

Mr Man,

There is now massive excess supply in the market which is still growing (i.e. numbers for sale and time to sell rising). That means that prices are a long way above a clearing price.

Add to that the simple fact that only a fool (or an Estate Agent) would recommend a negotiation tactic of starting high.

I have seen more than one example of a vendor giving a response to an offer such as this one, only to later drop their asking price even lower when they have failed to sell.
 
Mercman, your right about the valuation in todays market, it is difficult to assess a fair selling price without going into the whole ' a house it worth what someone will pay for it'. The problem that I find with the views people are taking is that a uniform approach is being taken i.e knock x% off the guide price. Yuo cant take one approach and apply it to every property. I agree with you that every buyer should be putting themselves in a position to maximise their savings but they should also be aware that there is a limit to how low vendors can go as they will find out when the shoe is on the other foot.
The EA in this case hasn't a clue how to deal with clients as someone rightly pointed out why lose a client who is obviously looking to buy somewhere soon. I would doubt however that the EA wouldn't return to the vendor with the offer and approaching vendor directly is something I am always sceptical about but I do see the logic in it.

Thomas22, I do think that you will find something in the end, but your approach would suit very few i imagine as it must take alot of time and patience and also alot of flexibility as to the location, style etc that your eventual house will have. I'm not being dismissive I was just trying to ad to the overall 'big picture'.
 
Hi,

Just one point I would like to make and have made it before - It is a home you are buying, everyone's talking about negative equity and afraid that there is house is going to be worth less if they bite the bullet now in a few month's time. If you are buying a home I presume you are going to be there for the next 5 to 10 years so if it ticks all the boxes that suit you and if you get it less than the asking price why not go for it.
 
angela59 said:
Hi,

Just one point I would like to make and have made it before - It is a home you are buying, everyone's talking about negative equity and afraid that there is house is going to be worth less if they bite the bullet now in a few month's time. If you are buying a home I presume you are going to be there for the next 5 to 10 years so if it ticks all the boxes that suit you and if you get it less than the asking price why not go for it.
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Regardless of whether it is an investment or a home to live in if you can save €50,000 then you should do your utmost to do so. Doesn't matter how long you intend to stay there IMO.

I can never understand why people are so easy with money loaned from a bank. €50k is €50k I'd rather have it than give it to someone else
 
Neil


You said in your first post that the house was for sale with two different auctioneers.

Off you go now to No 2. Explain what has happened, complain about the first auctioneer. Make the same offer and see what happens.

As some of the other posters have said, Navan (and areas in the outer commuter belt) are likely to fare very badly in a downturn.

As a matter of interest, how long would it take to get from Navan to the city centre for 9.00 am and how long would the return trip take leaving at 5.30 pm. I know Meath on Track is pushing for a rail link, but even with the best will in the world, and unlimited funding, that's not going to be a reality for 10 years or more.



Murt
 
OP I think you would do well to listen to MrMan... he seems like a decent type of EA. My father was a decent type of EA, he loved to give people the keys to their dream...a home.

He gave me some advise a few years ago about the state of property in Ireland. 10 years up, 10 years down. The up will be bigger than the down and in the long run you always make money. But the housing market takes a long time to "turn around".

My own experience for what its worth? My house is on daft, the house i want is on daft. Been that way for a year now. Im not lowering my price, in fact I probably couldnt sell it now for asking price as the house i want is part of a chain anyway. Why havent i taken it down from DAft? Why should i? Im not bothered anymore and find it interesting the longer it stays on the market - its my own little acid test of the market.

The OP can offer any amount he wants to, but if hes not willing to bargain with the vendor/ea than why is bothering to a bid in at all? The vendor could be like me, i wouldnt take 1% below my asking price.
 
The OP can offer any amount he wants to, but if hes not willing to bargain with the vendor/ea than why is bothering to a bid in at all? The vendor could be like me, i wouldnt take 1% below my asking price.[/quote]


Will you still be the same if the house still hasn't sold in a years time ? You are deluding yourself.
 
Murt10 said:
Neil


As a matter of interest, how long would it take to get from Navan to the city centre for 9.00 am and how long would the return trip take leaving at 5.30 pm. I know Meath on Track is pushing for a rail link, but even with the best will in the world, and unlimited funding, that's not going to be a reality for 10 years or more.



Murt
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The job I have means I don't have to travel to Dublin at peak times, so rush hour won't affect me.
 
yankinlk said:
The OP can offer any amount he wants to, but if hes not willing to bargain with the vendor/ea than why is bothering to a bid in at all? The vendor could be like me, i wouldn't take 1% below my asking price.
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I am willing to bargain, if the estate agent had have said the vendors would need more than my original offer and hinted at I price I would have considered upping my offer after a week or so, but after the way he dealt with me I'm in two minds.

I doubt he even put mo offer forward to the vendors.
 
Neil_Ireland said:
I am willing to bargain, if the estate agent had have said the vendors would need more than my original offer and hinted at I price I would have considered upping my offer after a week or so, but after the way he dealt with me I'm in two minds.

I doubt he even put mo offer forward to the vendors.
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With an agent like that one, I reckon this place will be on the market for a while.

ALso, to address again Mr Man's point earlier. Another thread has popped up in this forum where the OP thinks they have paid too much and are thinking of gazundering on an agreed price. That is the exact reason why in any negoitation (especially one with large sums in play) you just have to start low. EA's should know this and not get the strop.
 
EA's should know this and not get the strop.
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Are you saying I was being stroppy? My point was not that he shouldn't start low, rather that he might be in a better position to value how low to start with given that he has actually seen the property and we haven't. People will give advice on how to negotiate and to slash your offer etc but in the heat of things he has to do what he's comfortable with and also if he actually wants the house be realistic. Just because you or I say that you could get it for 20% less doesn't mean thats going to happen.

Negotiations (nearly) always start outside of the target price, its not a new concept.
 
MrMan said:
Are you saying I was being stroppy?
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No.

I was saying there is a story in this thread about an EA getting the strop. So don't get stroppy.;)

I really think it boils down to a situation that when there is negligible risk that you are going to miss out on a once in a lifetime opportunity, the only risk you face is paying more than you really needed to.

Only way to avoid that is think about what might be an "insulting offer" and make your first pitch somewhere below that.
 
Camry,

I agree with you in principle that you need to start low in negotiations, but what some people are not grasping is that negotiations can mean the price will shift up a bit. I can't understand those who say go in very low and if they don't accept it go in lower again, it really doesnt work. I wish more people would actually try and insult me with offers because once an offer and any offer is on the table i can start to really earn my keep. Alot of people really won't put in a low offer because of embarrassment which I don't understand.

If you go low thats well and good but do allow from some upward movement.
 
MrMan said:
Camry,

I agree with you in principle that you need to start low in negotiations, but what some people are not grasping is that negotiations can mean the price will shift up a bit. I can't understand those who say go in very low and if they don't accept it go in lower again, it really doesnt work. I wish more people would actually try and insult me with offers because once an offer and any offer is on the table i can start to really earn my keep. Alot of people really won't put in a low offer because of embarrassment which I don't understand.

If you go low thats well and good but do allow from some upward movement.
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THAT sounds very sensible to me !!!
 
Neil_Ireland said:
I am willing to bargain, if the estate agent had have said the vendors would need more than my original offer and hinted at I price I would have considered upping my offer after a week or so, but after the way he dealt with me I'm in two minds.

I doubt he even put mo offer forward to the vendors.
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You might be right there - and I dont agree that he isnt necessarily doing his job! I have left instructions with my vendor not to accept any offer below my asking price. Why should I? The house I want has not reduced its price (and been on the market 6 months longer than me!) I offered lower price and they refused and rented it out. The houses im in is fab tbh - i dont really need to move at all.

The simple fact is if i reduce my price the same has to happen all along the chain to make the numbers work. In the area im in that just isnt happening.
 
slinky said:
Agreed. Boxed up means major debt!
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From the perspective of a major hoarder, I cannot say your conclusion on this, can be altogeher accurate. Maybe the sellers have had major clutter and just started to de-clutter to sell and in the process have put everything into boxes just to make it easier for later. Not much point in cleaning up and putting everything you are going to bring with you, back out to gather dust again.!!!

So, if you see what I mean, you could be just drawing the wrong conclusions, if you've always been very effecient at getting rid of "rubbish", for want of a better word and one that I can't use here.:)
 
house prices are going to down for another 6 months at least.

any other analysis seems to be clutching at straws.

buy now at anywhere near the asking price in Navan and your a complete sucker.

I told my friend that about a property in Crum;in 9 months ago. He would nt listen. propertys in that area are down 50 GRAND and im no property expert.

All the indications are that prices have room to come down further.
 
MrMan said:
I can't understand those who say go in very low and if they don't accept it go in lower again, it really doesnt work.
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Say I put an offer on a house a month ago. I like the house but it's above my budget so I go in with the highest offer I can, say €20k below asking. I might be bidding lower but I have nothing to sell and I have mortgage approval so I'm a good bet if the vendor accepts my offer.

At the time the vendor rejected my offer but in the last month has gotten worried and decides they want to take my offer after all. They tell the agent to get back to me and see if I'll still buy. And as I haven't found anything else I like I'd be delighted to buy the house. However my bank has changed it's mortgage rates in the last month, as have many others and the most I can afford now is €40k below the asking.

It isn't spite on my part, it isn't a negotiating tactic, it doesn't matter what the EA or the vendor thinks. The situation has changed and my new offer is now all I can afford.
 
iguna - you sound like a rock of sense. The entire buying population is in the same boat so why not try €30k below instead. And I'll give you even money that you will be successful.
 
mercman said:
iguna - you sound like a rock of sense. The entire buying population is in the same boat so why not try €30k below instead. And I'll give you even money that you will be successful.
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It was just a hypothetical, I'm not buying anywhere now. In fact I'm selling, but in London where the market hasn't quite seized up yet.
 
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